Sharon has eaten a lot of pizza in the past few years.In fact,she's growing tired of pizza.Recently,she realized that pizza no longer brings her the same satisfaction,falling from 12 utils to 7 utils.Benefiting from higher productivity,Sharon's favorite pizzeria also lowered prices from $2 to $1 per slice.What happens to Sharon's marginal utility per dollar spent?

Question

Quizplus · Accepted Answer

Sharon's marginal utility per slice of pizza decreased from 12 to 7, but the price per slice decreased from $2 to $1. Therefore, the marginal utility per dollar spent has increased, meaning Sharon gets more satisfaction per dollar spent.

Sharon Has Eaten a Lot of Pizza in the Past